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In 2016 Weizhou Yu was appointed CEO of Concord New Energy Group Limited (HKG:182). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Concord New Energy Group

How Does Weizhou Yu's Compensation Compare With Similar Sized Companies?

According to our data, Concord New Energy Group Limited has a market capitalization of HK$3.0b, and pays its CEO total annual compensation worth CN¥2.3m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.8m. We examined companies with market caps from CN¥1.4b to CN¥5.4b, and discovered that the median CEO total compensation of that group was CN¥1.7m.

Thus we can conclude that Weizhou Yu receives more in total compensation than the median of a group of companies in the same market, and of similar size to Concord New Energy Group Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Concord New Energy Group has changed from year to year.

Is Concord New Energy Group Limited Growing?

On average over the last three years, Concord New Energy Group Limited has shrunk earnings per share by 11% each year (measured with a line of best fit). It achieved revenue growth of 36% over the last year.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Concord New Energy Group Limited Been A Good Investment?

With a total shareholder return of 5.2% over three years, Concord New Energy Group Limited has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared the total CEO remuneration paid by Concord New Energy Group Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Whatever your view on compensation, you might want to check if insiders are buying or selling Concord New Energy Group shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.